The EU offers Ukraine a €165bn loan

The EU offers Ukraine a €165bn loan from frozen Russian assets

BRUSSELS 03.12.2025

The European Union is considering granting Ukraine of a €165 billion loan, formed from the proceeds of frozen Russian assets. This is reported by the publication Politico.

The loan is a key part of a wider financing package of up to EUR 210 billion, which should support Ukraine's budget and accelerate the development of the defence industry.

What the funds will be used for

According to Politico, the preliminary distribution looks like this:

• 115 billion euros - for defence and arms production;

• 50 billion euros - to cover budgetary needs;

• 45 billion euros - for the repayment of the G7 loan provided earlier in 2024.

At the same time, the loan mechanism stipulates that Ukraine will repay the funds only after the war ended and only if Russia pays reparations. The EU acknowledges that such a scenario is currently considered unlikely.

Political obstacles

The main deterrent is the position of the Belgium, which requires clear guarantees in case Russia tries to recover its assets through international courts or diplomatic mechanisms.

Nevertheless, the European Commission is preparing to grant Ukraine emergency interim funding at the beginning of the year, to avoid budget deficits and stopping critical programmes.

Context.

This is one of the largest financial support packages for Ukraine in the EU's history. Brussels aims to ensure the long-term stability of Ukraine's public finances and strengthen the country's defence capabilities amid Russia's protracted aggression.